British troops stationed at Catterick Garrison – the Army's biggest base – are set to benefit from £19m of investment in the town centre from the Government's Levelling Up Fund.
Richmondshire District Council said the cash injection means the £21m initial phase of a regeneration programme to improve the town centre can now begin.
A new town square, new pedestrian and cycle links, enhanced play and active spaces, landscaping improvements and a new community and enterprise facility with a glass pavilion and outdoor seating area are all set to be built.
Catterick Garrison is home to the Infantry Training Centre Catterick, which trains all of the Army's infantry soldiers.
Director of Basing and Infrastructure, Major General Richard Clements, said: "I am delighted that the bid for Levelling Up funds has been successful.
"Catterick is an important garrison for the British Army and we look forward to working with our partners over the coming years to deliver the infrastructure necessary to provide improved facilities and services that will benefit our military colleagues and the wider Catterick community."
Critics claimed Tory areas were being favoured by the Government, with Catterick being in the Prime Minister's wealthy North Yorkshire seat.
Rishi Sunak rejected claims the allocation of more than £2bn in taxpayers' money for local projects was skewed towards relatively affluent areas including his own constituency.
He said the projects backed by the Levelling Up Fund would help generate pride in local communities and insisted northern England was receiving more per person than the south and said he was "delighted" the investment in Catterick will support troops living there.
"If you look at the overall funding in the levelling-up funds that we've done, about two-thirds of all that funding has gone to the most deprived part of our country," he told broadcasters during a visit to Accrington.
"With regard to Catterick Garrison, the thing you need to know is that's home to our largest Army base and it's home to actually thousands of serving personnel who are often away from their own families serving our country.
"It's important that they have access to a town centre providing the amenities they need – that's what that funding is going to deliver.
"I'm really grateful to all our Armed Forces personnel for the incredible job that they do and I'm delighted that this investment will support them."
None of the redevelopment in Catterick is being carried out on Ministry of Defence (MOD) land.
The successful bid for the funding was led by Richmondshire District Council, in partnership with North Yorkshire County Council and the MOD.
More than 100 projects are being supported as part of the Government scheme.
Colchester, which also has a major garrison, is receiving £19.66m.
It will be spent on a number of projects to "create a more attractive environment for residents and visitors", including upgrading a major gateway into the city centre and improved cycle routes.